The Bitcoin price is on the move as bulls take over the market and reclaim previously lost territory. While the rally signals potential, BTC still needs to overcome significant resistance at higher levels.
As of this writing, Bitcoin (BTC) trades at $27,300 with a 5% profit in the last 24 hours. In the previous seven days, BTC recorded similar profits as other cryptocurrencies in the top 10 see gains for the first time in over two weeks.
$30,000 Are The $12,000, A Bitcoin Bull Run In The Making
According to Bloomberg Intelligence’s Mike McGlone, the current Bitcoin price action is akin to that display before the 2020 bull run. At that time, macroeconomic forces influenced the crypto market as BTC prepared for a Halving event.
The cryptocurrency also struggled to reclaim a critical level of around $12,000. McGlone believes that $30,000 is similar to that level and that breaching it would open the door for further gains, but are the conditions given for such an event?
NewsBTC has reported that the biggest catalyzer for a Bitcoin bull run lies with the US Securities Exchange Commission (SEC). The cryptocurrency might have a massive capital inflow if the regulator approves a spot BTC Exchange Traded Fund (ETF).
Yesterday, asset manager Grayscale scored a victory against the Commission, and a US judge ruled in favor of the company in their Bitcoin ETF lawsuit. The expert commented the following on this development and how it can pave the way for a BTC rally:
The inevitable approval of Bitcoin exchange traded funds in the US is moving closer, but the elephant in the room for all risk assets remains – the Fed is still tightening (…). Sustaining back above $30,000 would indicate a reversal upwards akin to a similar pattern around $12,000 in 2H20.
Of course, McGlone doubts the cryptocurrency can push above $30,000 in the short term. Despite the similarities between the current price action and 2020, there are two significant obstacles: the Fed’s monetary policy and the low liquidity in the financial markets.
As a result of these conditions, the chart below shows the BTC price trending to the downside, with volatility moving in the opposite direction. The expert believes this dynamic potentially sets the stage for Bitcoin to drop into the $12,000 region.
While these factors remain, Bitcoin will likely move sideways around its current levels, but the cryptocurrency will keep its bullish structure even if this scenario plays out.
Cover image from Unsplash, chart from Tradingview